TUESDAY 8/5/14; PMI Services; CVS; COH; Factory Orders; Potential Russia Invasion into Ukraine; DIS; GRPN

The RBA maintains the cash rate at the record low 2.5% unchanged as expected. Aussie dollar 0.9338. The mining investment boom in Australia continues to trail off so the central bankers are trying to aid the domestic economy as well as address the overheated housing sector. SPASX200 -0.4%. Ear implant maker Cochlear jumps +10% after traders listen to a strong earnings report.

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o say, “Poland stands on the brink of conflict,” a much tamer statement concerning the Ukraine civil war than “Russia is about to invade” which created the mini panic today. The Israel-Hamas cease-fire is holding so peace talks may begin in Egypt in a couple days.

A UAL airplane makes an emergency landing at Hallifax airport in Nova Scotia, due to fire and smoke. The Boeing 777 took from New Jersey heading to Brussels. BA and UAL may trade weaker tomorrow as an investigation begins.

Polls continue to show a growing frustration with President Obama and the economy. The president’s approval remains low and drops to 40% and lower. The 40% are likely individuals that would support the president no matter what. 70% of Americans believe the country is moving in the wrong direction. Over one-half of Americans think the economy is in recession even though the ivory tower economists and politicians say everything is rosy. Of course the cheer leaders are the wealthy that benefit from the Fed’s easy money Keynesian policies with stock gains beyond their wildest dreams all at the expense of the middle and lower class. The vanishing middle class creates a further separation between rich and poor.